Thesis (M.Sc. Agric. (Agricultural Economics)) -- University of Limpopo, 2018 / Agriculture is the backbone and a very important sector of the South African economy. This is because it provides food and employment to a lot of people in the country especially those living in the rural areas. Smallholder farmers also play an important role in livelihood creation and also alleviation of poverty among the population in Limpopo province, but despite this, their productivity is low. A decline in agricultural productivity reduces market access resulting from low quality and quantity of produce by smallholder farmers which invariably affect their accessibility to market. This study therefore examined the determinants of market access and productivity among smallholder maize farmers in Lepelle-Nkumpi municipality using the Probit model and Cobb Douglass production functions. While the Probit regression model was used to analyse the effect of socioeconomic characteristics of smallholder maize farmers on market access, the Cobb Douglass production function was used to examine the determinants of productivity among the farmers in the study area. The results of the Probit regression analysis indicated that farm size, hired labour and maize produced per hectare had positive significant influence on probability of farmers accessing markets. Farm size and maize produced per hectare were statistically significant at 1% and hired labour was statistically significant at 5%. The results of Cobb Douglas Production Function indicated that the elasticities of market access, farm experience, fertilizers, capital and membership of association were significant and positive. Based on the study findings, it is recommended that farmers should be provided with market infrastructure and marketing information services. This will help the farmers in a way that the transaction cost will be minimised and farmers will not incur more cost when they participate in the markets. Farmers in the study area indicated that transportation cost is the major challenge facing them. This is because of the poor conditions of roads in the study area. Therefore, the study recommends that there should be inputs subsidy that helps farmers to improve their productivity.

In recent years the three Prairie Pools have actively expanded their primary operations to include a number of investments both within and outside of the agricultural sector. The Pools' investment strategies are economically interesting because they are being pursued within the context of a co-operative organizational structure which requires that the users of the cooperative business also own, control, and benefit from its operations. This thesis examines the possible economic incentives agricultural co-operatives may have to invest in vertically integrated and diversified activities using the case of the Western Canadian co-operative elevator companies as an example. The analysis undertaken in this thesis is structured in two ways. First, the economic literature regarding co-operative formation and conventional firm expansion is surveyed. This analysis suggests that an important difference between vertically integrated investments and diversified investments is that they are motivated by the realization of distincly different sets of economic benefits for the co-operative firm and its members. It is argued that co-operative vertical integration can convey benefits to members indirectly through the market, in the form of increased producer margins and improved market access. However, these benefits may not impact the "bottom line" of the co-operative firm. Diversification can, on the other hand, provide a co-operative with direct monetary benefits in the form of improved financial performance and increased profits, which can translate into increased patronage refunds available to members. The second component of this analysis involves the development of a simulation model to examine the implications of an additional hypothesis proposed to explain co-operative expansion. The proposed hypothesis is based on the notion that perhaps the indirect market benefits from cooperation and co-operative expansion are being undervalued. This undervaluation can result in a preoccupation with the monetary benefits from co-operative business, and may therefore cause a bias towards diversified investments. The model developed in this thesis illustrates that, although such a bias may improve a co-operative's rate of return, it may also result in significant opportunity costs for agricultural producers due to a decrease in a co-operative's pro-competitive effect on primary markets.

Thesis (Honors)--College of William and Mary, 2008. / Includes bibliographical references (leaves 39-41). Also available via the World Wide Web.

Thesis (M.A.)--University of North Carolina Wilmington, 2009. / Title from PDF title page (January 11, 2010) Includes bibliographical references (p. 83-88)

Published also as a Thesis (Ph. D.) Princeton University. / Xerox microfiche facsimile.

Thesis (M.S.)--Wisconsin State University at La Crosse.

In recent years the three Prairie Pools have actively expanded their primary operations to include a number of investments both within and outside of the agricultural sector. The Pools' investment strategies are economically interesting because they are being pursued within the context of a co-operative organizational structure which requires that the users of the cooperative business also own, control, and benefit from its operations. This thesis examines the possible economic incentives agricultural co-operatives may have to invest in vertically integrated and diversified activities using the case of the Western Canadian co-operative elevator companies as an example. The analysis undertaken in this thesis is structured in two ways. First, the economic literature regarding co-operative formation and conventional firm expansion is surveyed. This analysis suggests that an important difference between vertically integrated investments and diversified investments is that they are motivated by the realization of distincly different sets of economic benefits for the co-operative firm and its members. It is argued that co-operative vertical integration can convey benefits to members indirectly through the market, in the form of increased producer margins and improved market access. However, these benefits may not impact the "bottom line" of the co-operative firm. Diversification can, on the other hand, provide a co-operative with direct monetary benefits in the form of improved financial performance and increased profits, which can translate into increased patronage refunds available to members. The second component of this analysis involves the development of a simulation model to examine the implications of an additional hypothesis proposed to explain co-operative expansion. The proposed hypothesis is based on the notion that perhaps the indirect market benefits from cooperation and co-operative expansion are being undervalued. This undervaluation can result in a preoccupation with the monetary benefits from co-operative business, and may therefore cause a bias towards diversified investments. The model developed in this thesis illustrates that, although such a bias may improve a co-operative's rate of return, it may also result in significant opportunity costs for agricultural producers due to a decrease in a co-operative's pro-competitive effect on primary markets. / Land and Food Systems, Faculty of / Graduate

A theoretical analysis of marketing cooperatives indicates that in imperfect markets where cooperative members possess the resources to expand production to levels where their marginal costs equal their marginal returns, both producers and consumers are better off than if the producers sell smaller output quantities to investor-oriented firms at a lower market price. Although the United States government has supported the formation and operation of many small-scale marketing cooperatives in the southeast, their success has been low. This thesis describes one approach used to increase the viability of small-scale vegetable marketing cooperatives through a federated cooperative, the Horticultural Producers Federation (HPF). The HPF provides marketing and management services that address specific market failures and intra-firm inefficiencies encountered by its member cooperatives. HPF services include record keeping, market information, financial planning and management, accounting and payroll, educational and technical support. centralized marketing, and a newsletter. The development and implementation of these services is described in this thesis as is the cooperatives' evaluation of these services through the five year duration of the study. The cooperatives' final evaluation of the services and the HPF indicated that on average they were more than satisfied with the individual HPF services and the impact of the HPF on them and their members. Future challenges for the HPF include the development of more services by the HPF or other agencies to address a few remaining problems. Services which would target areas of concern include centralized computer support; public relations and promotion activities; as well as member, director, and management training. The large majority of cooperative members which are part-time farmers also poses a significant challenge. Until these farmers gain the resources and expertise to intensively manage their operations, the individual cooperatives and the HPF centralized marketing service will face problems of under production and poor quality. / Master of Science

Marketing cooperatives play an important role in agricultural activities. Institutional support for cooperatives is based on the idea that, collectively, farmers can achieve benefits than, individually would be difficult to obtain. Head lettuce in the Lower Mainland region of British Columbia is marketed and distributed by a central selling agency which is organized as a producer cooperative. Members of the cooperative are subject to regulations, in the form of market quota allocations which control the quantity of head lettuce they can sell through their cooperative. This study describes and analyses the market structure of the head lettuce industry in British Columbia to ascertain and quantify the source of benefits to producers from cooperative marketing within a regulated marketing environment. A model of the industry is constructed to characterize the market for head lettuce in B.C. The parameters which affect consumer demand and farm supply are estimated with econometric equations. A feature of supply is that current production decisions are influenced by the producer's market quota allocation which, in turn, is determined by the producer’s past sales. The market quotas are believed to have constrained supply response and this is borne out by the empirical results which indicates a highly inelastic supply curve. The demand for head lettuce is also estimated to be inelastic. This result is not surprising since head lettuce is regarded as a basic commodity by consumers. The estimated supply and demand elasticities are used to derive linear supply and demand curves at the cooperative and wholesale levels. These are used with the observed 1990 price and quantity levels to calibrate a model of the B.C. head lettuce industry. A counterfactual model is then formulated to simulate a market with no controls on output. Given an inelastic wholesale demand, the simulation results indicate that for very small increases in cooperative output, large decreases in price occur. Consequently total revenues decline at every alternative assumption of supply increase. This result supports the hypothesis that output restrictions by the cooperative have the potential to increase members' output prices. It is concluded that while the market quotas have in the past provided positive benefits to cooperative members, the quotas may now be hindering the process of adjustment to the loss of tariff protection and changing market conditions by making producers less price responsive.

This study focused on the technical and institutional constraints faced by the vegetable co-operatives with regard to the impact on productivity. Vegetable co-operatives have no access to markets due to their poor performance on productivity and poor quality produce resulting to low prices for the produce such that they cannot compete in a market economy. In this study, the data was drawn from a sample of thirty vegetable co-operatives in the Buffalo City Metropolitan Municipality (BCMM) of the Eastern Cape; obtained through focus group discussions and interviews from each cooperative. The objectives of the study are to measure the productivity of vegetable co-operatives using Total factor productivity analysis (TFP) and profitability of vegetable co-operative using Gross Margin (GM). Followed by the descriptive statistics in identifying and assessing the socio-economic characteristics as well as coping strategies adopted by vegetable co-operatives in BCMM where percentages, means and tables are used looking at the highest frequency. The results show that the vegetable co-operatives in the BCMM are not productive and profitable due to major constraints experienced by co-operatives such as lack of market, information, trainings and business skills, capital, infrastructural facilities, effective extension services that all leads to poor produce quality. Co-operative is said to be profitable and viable if total revenue is greater than the total variable cost which makes the gross margin positive. In this case, the total gross margin is negative. The results showed that the production costs, maintenance (tractor hire, generator hire and servicing) and electricity costs were the major costs incurred in the production of vegetable by the co-operatives.